Egypt’s budget deficit narrows to 2.1% in Q1 FY2024/25
Updated 11/3/2024 6:01:00 AM
Arab Finance: Egypt's budget deficit declined to 2.12% of gross domestic product (GDP) during the first quarter (Q1) of the fiscal year (FY) 2024/2025, versus 3.26% of GDP in the same period a FY earlier, according to the Ministry of Finance’s October financial report.
This drop was driven by increased government revenues, mainly from taxes, and lower debt interest.
The government aims to reduce the overall deficit for the current FY to 7.3% of GDP.
Also, government revenues rose by around 40.2% year on year (YoY) to EGP 470.1 billion in Q1 FY 2024/2025, with tax revenues growing by 45% to EGP 413.28 billion.
Expenditures also climbed 4.6% YoY during the July-September period of this year to EGP 827.75 billion.
The ministry attributed part of this improvement to revenue from the Ras El-Hekma deal.
This agreement, which involved a $24 billion investment over three installments, along with the settlement of $11 billion in Emirati deposits, has eased foreign exchange pressures and contributed to stabilizing Egypt’s currency.
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